Lynas (ASX:LYC) shares close in red today, here's why

3 min read | April 27, 2022 06:37 PM AEST | By Bhawna Gupta

Lynas (ASX:LYC) shares close in red today, here's why — Image source: © Tbe | Megapixl.com

Highlights

Lynas’ shares last exchanged hands at AU$8.86 each, down 1.01% on ASX.

Materials was one of the worst-performing sectors today, followed by IT and healthcare sectors.

Lynas is a Malaysian firm that specialises in rare earth ore extraction and processing, as well as rare earth deposit exploration

Shares of Lynas Rare Earths Limited (ASX:LYC) closed in red today (27 April 2022). The company's shares last exchanged hands at AU$8.86 each, down 1.01% on ASX today.

According to the ASX website, around 5.82 million shares have been traded, and the company's market capitalisation stood at AU$8.07 billion.

Although, there is no such announcement by the company that can justify its share price fall but Lynas' shares have been continuously falling even after the record quarterly revenues (2QFY22).

The ASX 200 Materials Index opened in red today, and this might be the reason for the company's share price fall, as it is involved in the production of rare earth concentrate. However, ASX 200 Materials Index closed in green today, up 0.19% at 17,231.30. On the other side, Materials was one of the worst-performing sectors today, followed by IT and healthcare sectors.

Source: © Sbotas | Megapixl.com

About Lynas

Lynas is a Malaysian firm that specialises in rare earth ore extraction and processing, as well as rare earth deposit exploration, especially in Australia and Malaysia. The company's properties include Mt Weld, Lynas Malaysia, Kalgoorlie, and Lynas USA.

Mt Weld is a rare earth mine in Western Australia, some 35 kilometres (km) south of Laverton. Lynas Malaysia is an integrated manufacturing plant in the Gebeng Industrial Estate near the Port of Kuantan, Malaysia, that separates and processes rare earths materials.

Kalgoorlie, located in Western Australia, is a rare earth processing complex. Lynas Malaysia Sdn Bhd, Lynas Services Pty Ltd, Mount Weld Holdings Pty Ltd, Mount Weld Mining Pty Ltd, and Lynas Kalgoorlie Pty Ltd are some of the company's subsidiaries.

On 12 April 2022, Lynas shared its quarterly activities report for the period ending March 31, 2022.

Q3 Highlights

Data Source- Company announcement dated 12 April 2022

Stock performance: Lynas' shares have been on a roller coaster ride since starting of 2022. They have fallen almost 13% YTD. However, the company has provided around 70% returns to its long-term shareholders in the last one year.

Other rare earth stocks like Alkane Resources Limited (ASX:ALK) and Australian Rare Earths Limited (ASX:AR3) closed in red today.

Also Read: Alkem (ASX:AKE) up over 7% on plans to boost lithium produce

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.